In June this year, the purchasing managers index (PMI) for the Chinese steel sector was at 49.9 percent, up 14.7 percentage points compared to May this year, as announced by the China Steel Logistics Committee (CSLC), part of the China Federation of Logistics and Purchasing (CFLP).
In June, the production index for the Chinese steel sector stood at 49.9 percent, 22.4 percentage points higher than that recorded in May.
In June, the new order index stood at 51.5 percent, 24.1 percentage points higher than in May, returning to the expansionary range in the given month.
Moreover, in June, the index of raw material purchase price stood at 42.9 percent, 24.5 percentage points higher than in May. In June, prices of all raw materials have seen a rebounding trend amid the improving demand from steelmakers.
The demand for steel may slacken amid the rainy weather and high temperature in the traditional offseason in summer, which will negatively impact its prices. Meanwhile, the quick rises in iron ore prices over the previous period will result in a slow-down in its prices in July, which will weaken the support to steel prices from the cost side. It is expected that finished steel prices in the Chinese domestic market will likely edge down in July.
